Ahmed Husain Mohamed H00216550, Saeed Saeed Ahmed H001514968BA

Higher Colleges of Technology

RAK Colleges

BMGN N490Industry Project

Industry Proposal

RAK White Cement Company

How do Ras Al Khaima Co. for White Cement and Construction Materials motivate it’s employees to increase staff moral & productivity

Prepared for:

Ms. Joanne Rowe

Facilitator of BMGN N490 Industry Project

Prepared by:

Ahmed HusainH00216550

Saeed SaeedAlshehhiH00151292

8BA

Thursday, March 13, 2014

13/3/2014Page 1

Ahmed Husain Mohamed H00216550, Saeed Saeed Ahmed H001514968BA

Table of Contents

1Introduction:

1.1Purpose of study:

1.2Context of the study:

1.2.1The background RAK information and industry:

1.2.2Complete company name, company’s start, line of business, organization, and growth.

1.2.3Ras Al Khaima Co. For White Cement and Construction Materials mission, goals, and corporate strategy.

1.3Issue statement:

1.4Significance:

1.5Limitations

1.6Literature review:

1.7Definitions of terms

References:

1Introduction:

Motivating employees is one of the challenges that many companies face, and some of them beat it and the others cannot. This proposal report will study how a Ras Al KhaimaCompany for White Cement and Construction Materials has responded to the challenges of staff motivation financially , and how efficient this is being implemented. After that we will do a comparison between leading cement company’s motivation strategies and Ras Al Khaima for White Cement and Construction Materials. Finally we will give recommendation on motivation strategy which will enhance the performance of Ras Al Khaima for White Cement and Construction Materials. This report will be given to Ms. Joanne Rowe facilitator for BMGN-N490 Industry Project, and is a requirement of this subject.

1.1Purpose of study:

The purpose of this report is to analyze, evaluate and criticize current practices of Ras Al Khaima for White Cement and Construction Materials toward motivating employees. The second reason of this report is to fulfill the requirements of Industry Project course BMGN-N490, and for us to gain valuable experience working with industry.

1.2Context of the study:

Ras Al Khaimahis located near high and huge mountains called (Hajar Mountains) which are considered providers of the best High quality limestone and rocks that are used for raw material in the manufacture of cement and construction. In addition the cement factories are located near Mina Saqr port, the main port of exporting and importing in Ras Al Khaimah. Within the local UAE market the factory exportsit is products to different markets include Saudi Arabia, Oman, Kuwait, Bahrain, Qatar and Yemen. Sales are also made to India, Bangladesh, Sri Lanka and East Africa. (ebmanage, 2014)

1.2.1The background RAK information and industry:

In the past there was only one cement company, this company is (Union Cement Company) but nowadays there are three Cement Companies and one Company for white cement. With its 416,600 population Ras Al Khaimah industry has increased more to cover the needs of the construction and reconstruction of RAK infrastructure. The production of white cement company is 450,000 tons of cement over the year 2013. (rasalkhaimahtourism, 2014)

1.2.2Complete company name, company’s start, line of business, organization, and growth.

Ras Al KhaimaCopmpanyFor White Cement and Construction Materials was established on 1986. The factory is located near the port of Mina Saqr which is 25km north of the city of Ras Al Khaimah. The main product of the factory is white cement, with 2 other products: Lime, Concrete blocks. Ras Al Khaima for White Cement and Construction Materials is producing high quality products,therefore the company got ISO 9002 certificate for product quality. (rakwhitecement.ae, 2014)

1.2.3Ras Al Khaima Co. For White Cement and Construction Materials mission, goals, and corporate strategy.

The company’s vision is – “Leadership, Excellence and Innovation in the construction industry.” The clarity of this vision is such that it has been transpired to each and every employee of the organization, to enable them to aid in performing their duties in best possible manner.

The company’s Mission: Excellence to meet the needs and aspiration of customers.

Some of the company’s Goals:

To achieve the high standards of quality in the service of our internal and external stakeholders.
To achieve excellence and maintain it.
Product development through innovation of new construction materials. (Alshehhi, M, 2014)

1.3Issue statement:

Financial rewards and allowances in Ras Al KhaimaCompany for White Cement and Construction Materials is important to maintain staff retention, increase productivity and enhance staff morale.

1.4Significance:

This study will give Ras Al Khaima white Cement a better idea to find whether Ras Al Khaima for White Cement and Construction Materials financial rewards are allowances are motivating employees, and making them happy working or not, and how to improve their financial rewards which is part of the motivation strategy , plus it will give the company also a better idea to find out whether it is employee’s needs are actually met or there is disparity between what management claims and the reality on the ground , because sometimes Companies puts effort to motivate their employees and provide them with compensations theemployees are not happy with.

1.5Limitations

There are a couple of factors which may prevent us from gathering accurate data and as much information as possible to validate that data. The first factor is the confidentiality of the information, because our research is related to both the company’s way of motivating employees and how satisfied the employees actually are with that. The second factor is connected to the first factor and is to do with openness and transparency. The company is likely to give us the information they think we want and what they believe will reflect them with a perfect light. In other words a shiny picture, they may not share with us the challenges they face. This may also be the same for the staff who may fear reprimands, so they may not be honest in their responses. Other reasons for not being completely transparent may be due to not being entirely aware of the disparity between management and staff. Nevertheless we are prepared to be surprised because maybe we will get information that is candid, realistic and authentic.

1.6Literature review:

Ras Al Khaimahthe cement production capital of the United Arab Emirates and it has five major cement plants in the UAE .(RAKnewsonline,2014) The first cement producing company in UAE established in the year of 1972, and this company’s name is Union cement. Nowadays there are 20 facilities and factorties to produce cement. By the year 2013, the domestic consumption rate of cement in UAE reached 8 million tons per year while the factories in UAE are able to produce 24 million tons of cement annually, and these extra tons that cement companies in UAE are producing is exported overseas. Currently the UAE is in the ninth in exporting cement in the world.(Albayan, 2014)

Ras Al Khaima Co. for White Cement and Construction Materials as per Ms. Maryam 2014 the assistant manager said cares a lot about it is employees and it made motivating employees on top of their priority list, not just the employees career life it also cares about their personal life, because Ras Al Khaima for White Cement and Construction Materials consider it is employees as it is main asset.

Ras Al Khaima Co. for White Cement and Construction Materials motivates it is employees by making the employees feels that they are important to the company, and the company is encouraging them to grow professionally by letting them enter training programs which will lead them to be more efficient and productive, and care about their personal life by providing them with comfortable environment to work in, and help them in solving their personal problems even after the regular working hours.(Al Shehhi, M, 2014)

1.7Definitions of terms

Word / Definition
Motivation / Factors that stimulates employee's energy to increase their productivity
Export / To send products of services overseas for the reason of selling them
Consuming / to use
Transparency / Something visible or an obstacle clears for viewing
Plant / Factory

(Business dictionary, 2014) (Dictionary,2014)(Cambridge Dictionary, 2014)

2PEST Analysis

2.1Politics:

UAE consists of seven emirates – Ras Al Khaima (RAK) is one of these Emirates, which is linked by federal government and each emirate has it is own local government as well ("Government," n.d.).
RAK –is ruled by HH Sheikh Saud Bin Saqr Al Qasimi (RAK) , and the government type is sheikhocracy, and UAE’s government is stable ("UAE Is Model of Political," 2011).
RAK and Dubai have their own judicial structure not like the other five emirates which have the joined the federal structure (HaykalShrayh, 2012)..
UAE i.e. RAK is doing a good job in rule of law, it is ranked 27th of 99 countries, which are strict in applying law and has low crime rate (The Global Rule of Law, 2014).
UAE has federal labour law which is applies in all of the seven emirates without exemption. Labour law is enforced by ministry of labour, and due to liberal labour law it became easy to bring foreign labour ("UAE Labor Law," n.d.).
UAE is the 26th transparent government on top of the Arab countries (Arnold, 2013), and it is fighting bureaucracy and trying to reduce it to attract investors. (Albayan, 2014)
UAE is a party in both General Agreement on Tariff and Trades, in World Trade Organization, and UAE’s tariff rate is 5 %, less than the maximum tariff set by World Trade Organization by 10% ("U.A.E. Trade Policy," n.d.).
Press is free to write whatever it wants as long as it does not talk about the government (Abdullah, 2008).
The first cement company in UAE is Union Cement it was established in 1972 ("Welcome to Union Cement," n.d.).

2.2Economic:

RAK GDP is Dh 24067million (Statistical Yearbook, 2013).
UAE GDP per capita is $24,824.80. ("United Arab Emirates GDP per Capita," n.d.).
RAK GDP expected to rise 8% in 2015 ("Ras Al Khaimah to Register," n.d.).
Ras Al Khaima has stable economy with low volatility. ("UAE Is Model of Political," 2011).
UAE’s inflation rate is 2%, and it is rising ("UAE Inflation Seen Rising," 2014).
UAE central Bank sets the interest rate, and it is now 1%("United Arab Emirates Interest," n.d.).
RAK unemployment rate is 3% for males and for females 16% .
The average cost of unskilled worker is Dh33,000 , while the cost of skilled worker is Dh144,000 (Yousef, 2010).
RAK government owns 10% of RAK Co. of white cement and construction material. (RAKwhitecement, 2005)

2.3Social:

RAK population: 422,000 (Statistical Yearbook, 2013).
68.8% of population in labour force.
People in UAE prefer to work in Public sector rather than working in Private sector (Shaheen, 2009).
There are 114 schools in RAK, 90 public schools and 24 private schools (Statistical Yearbook, 2013).
Government hospitals: 4, Health Centre: 18, Pharmacies: 58. (Statistical Yearbook, 2013).
Life Style in RAK : people stuck to tradition, although globalization has noticeable impact but still people of RAK did not abandon tradition("Heritage and Culture," n.d.).
The crime rate relatively is very law compare to other highly industrial nations. The reason of law crime is that UAE is Islamic country and UAE law is follow the sharia laws. Also the attributes of UAE people that he is tolerant and generous. (Wikipedia) .
Emirati people in UAE prefer to work in Public sector rather than working in Private sector (Shaheen, 2009).
In 2003 there were 127 schools in RAK, 99 public schools and 28 private schools. (Statistical Yearbook, 2003).
In 2013 there were 116 schools in RAK, 91 public schools and 25 private schools (Statistical Yearbook, 2013).

2.4Technology:

Emerging technology helped in the industrial evolution, number of industrial plants 2235. (Statistical Yearbook, 2013).
Internet impact is huge on the whole UAE society. ("Internet and the Arab," n.d.).
When white cement factory start producing in 1984 the production was reaching 450.000 MTPA. Today RAK White cement clinkers are producing about 600,000 MTPA with significant changes and improvement on the ways and steps of producing. (rakwhitecement).

2.5Summary:

After examining the PEST analysis of Ras Al Khaimah Co. for White Cement and construction materials there are some significant opportunities but alsoa limited amount of threats. First as for political, Ras Al Khaima government is stable as stated by emirates24/7 newspaper’s article. In addition Ras Al Khaima is applying the law, and it is strict in applying it and the consequences of that is Ras Al Khaima is now attracting much different kind of people because it is a safe place to live and to invest in. not just that, the other thing that attract people to choose Ras Al Khaima to is that individuals do not pay taxes, plus labour law enforcement, and no foreign exchange controls foreigners will be more attracted to work in UAE. Second as for economic, as a result of the political stability, economy became stable as well, and that attracts investors, in addition to that the economy is rising and the GDP is expected to rise 8% in 2015. When it comes to threats there are few, and one these threats is the rising inflation rate, which will affect the prices in future, because high inflation rate, means high price, which means high cost and low profit. Second in the rule of law, it is considered as a threat, because cement companies are required to reduce pollution as much as it can, and reducing pollution means an extra cost.

3Primary research analysis:

The data we gathered provide us with some information, but nothing we can draw a clear conclusion from. Although we covered substantial area of the financial allowances with the questions, but still the questions were not deep enough, and more importantly we only surveyed 16 employees which is not enough to draw a conclusion, to find out whether the company’s financial allowances makes the employee’s happy and motivated or not, and we found the following. 10 out of the 16 employees are happy, which means that the majority of the employees are happy while 6 out of 16 employees are unhappy. In addition to that all of the employees have health insurance which means that the company cares about it is employees health . 3 out of the 6 unhappy employees have not had a salary rise. Plus just one of them does not get education allowance. When talking about remote area allowance just one employee gets it. . None of them get child allowance. In addition to that 1 out of the 6 employees does not get housing allowance. While just two of them gets ticket allowance. While the most interesting result we found, is that 4 out of the 6 unhappy employees salary is more than AED 10,000, and three of them their spending is less than AED 10,000 .

Finally when comparing the results of the survey we found the following; approximately 83% of the unhappy employees get education allowance, while none of the happy employees get it. Plus 17% of the unhappy employees get remote area allowance while none of the happy employees get it. When it comes to housing allowance approximately 83% of the unhappy employees get housing allowance and just 60% of the happy employees get the housing allowance. On the other hand approximately 70% of the happy employees get ticket allowance and just 33% of the unhappy employees get ticket allowance. Finally 70% of the happy employees got salary raise while just 50% of the unhappy employees got their salary raised.

In conclusion as we mentioned earlier no clear conclusion can be found by the information we got, but the results we got so far showed us that out of the 16 employees we surveyed 31% of them get education allowance, 56% of them get ticket allowance, 6% of them which equal to 1 employee get remote area allowance, 69% of them get housing allowance, and just 62% got salary raise. The above tells us the financial rewards necessarily do not correspond with the happiness factor. To draw better conclusion we would have to change the survey questions plus how many people we surveyed.

4.Recommendations:

From the primary research analysis above, we conclude that financial rewards were not the key to employee’s happiness. Therefore we recommend that Ras Al KhaimaCompany for White cement and Construction Materials focus more on the psychological side,

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Addendum (1) : Ahmed’s Reflection

1. Why was it important for you, rather than the college to establish the industry, the contacts within the company and then to brief them about your project?